ON Semiconductor : Onsemi Q1'24_Quarterly Investor Presentation

Quarterly Investor Presentation

First Quarter 2024

Public Information © onsemi 2024

Safe Harbor Statement and Non-GAAP and Forecast Information

This document includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the second quarter of 2024. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," "anticipates," "should" or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A "Risk Factors" in the 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 5, 2024 (the "2023 Form 10-K") and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2023 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation

2	Public Information © onsemi 2024

Sustainable Ecosystem

Financial & Business Update

About onsemi

Appendix

3	Public Information © onsemi 2024

Q1'24 Highlights

Exceeded expectations in a challenging environment

New product revenue grew 9% Y/Y, outpacing total company growth

Sustainable Ecosystem

Gross margin of 45.9%

compared to ~ 30% in prior downturns

Free Cash Flow

increased ~3x Y/Y

Returned ~100% of LTM free cash flow to shareholders through buybacks

Vehicle Electrification revenue grew ~60% Y/Y

Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non- GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release,

4 which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation

Public Information © onsemi 2024

Non-GAAP Financial Performance

Gross

Revenue Margin

$1.86B45.9%

-5% Y/Y

-90 bps Y/Y

Automotive

$1,017m Revenue

3% Y/Y

Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non- GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release,

5 which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation

Operating

Margin

29.0%

-320 bps

Y/Y

Industrial

$476m Revenue

14% Y/Y

Public Information © onsemi 2024

Diluted	LTM Free
EPS
Cash Flow

$1.087.2%

- $0.11 Y/Y	+ 230 bps
	Q/Q

Other

$369m Revenue

12% Y/Y

Strategic Announcements

onsemi Releases DC	onsemi Introduces 7th	onsemi Aligns
Ultra-Fast Electric	Gen IGBT based	Business Groups to
Vehicle Charging	Intelligent Power	Expand Product
Solutions to Address	Modules to Reduce	Portfolio and
Critical Barriers to	Energy Consumption in	Accelerate Growth
Adoption	Heating and Cooling

View all press announcements at:

onsemi.com/company/news-media/press-announcements

6	Public Information © onsemi 2024

Q2'24 Guidance Highlights

Revenue	GM
GAAP:	GAAP:
$1,680 to $1,780m	44.1% to 46.1%
Non-GAAP:	Non-GAAP:
$1,680 to $1,780m	44.2% to 46.2%

OPEX	EPS
GAAP:	GAAP:
$327 to $342m	$0.82 to $0.94
Non-GAAP:	Non-GAAP:
$313 to $328m	$0.86 to $0.98

Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non- GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP

Reconciliation

Public Information © onsemi 2024

Sustainable Ecosystem

Financial & Business Update

About onsemi

Appendix

8	Public Information © onsemi 2024

onsemi at a glance

Our Mission

We push innovation to create intelligent power and sensing technologies that solve the most challenging customer problems

Our employees are inspired to go above and beyond, to increase stakeholder value through high quality and high value products and services

S&P 500® index

500 100 2.5x ~30K 19

$8.3B	Fortune 500®	Nasdaq 100 ®	Increase in	Employees	Manufacturing
	company	company	Free Cash Flow	Worldwide	Sites in 9 Countries
2023 Revenue	3.4x		11%	37K+	50B
	Operating Income Growth	Revenue CAGR	Portfolio SKUs	Units shipped in 2023

	Revenue CAGR from 2019-2023
9	Free Cash Flow Growth and Operating Income Growth from 2019 - 2023	Public Information © onsemi 2024

onsemi Focus: Accelerating Shareholder Value

Revenue

• Sustainable Ecosystem to drive revenue 3x the industry growth1
• Aligned to fast-growing secular megatrends of Auto and Industrial
• SiC growth 2x the industry; 35-40% market share2

Shareholder Capital Returns

• Shareholder-friendlycapital allocation policy
• Return 50% of Free Cash Flow through share repurchases
• $3.0B share repurchase authorization

	Notes:
	1.	onsemi estimates based on current market projections, excludes Memory
10	2.	Yole SiC market forecast: 2022-27 CAGR of 33%	Public Information © onsemi 2024
3.	onsemi estimates based on current market projections

Free Cash Flow

• Significant growth in Free Cash Flow margin to 25-30%3
• Capital efficiency through high
  ROIC investments and working capital management
• $3.5-4.0Bin Free Cash Flow in 20273

Gross Margin

• Significant gross margin expansion to 53%
• Fab Right: optimize manufacturing network for cost efficiencies. Maximize utilization with flex to external capacity
• Accretive SiC margins at scale
  Ramp new and differentiated products